The initial public offering (IPO) of Sri Lotus Developers has seen robust demand from both retail and qualified institutional buyers on its first day of bidding. The IPO, which opened today and is set to close on Friday, August 01, was oversubscribed. The issue received bids for 14.27 crore shares against the total offer of 3.70 crore shares, resulting in an overall subscription of 3.86 times by the end of Day 1, according to exchange data.
Qualified institutional buyers showed strong interest, with their portion subscribed to 5.68 times, while retail investors also showed greater enthusiasm, with their portion booked 3.05 times. The NII portion was booked at 3.32 times.
Sri Lotus Developers aims to raise ₹792 crore through the IPO, which is entirely a fresh issue of 5.28 crore shares. The price band for the offer is set between ₹140 and ₹150 per equity share, with a face value of ₹1 each. The IPO lot size is fixed at 100 shares, requiring a minimum investment of ₹15,000 for retail investors.
The allotment for the IPO is expected to be finalized on Monday, August 04, 2024. The shares are scheduled to list on both the NSE and BSE, with a tentative listing date of Wednesday, August 06. Motilal Oswal Investment Advisors Limited is the book-running lead manager of the Sri Lotus Developers IPO, while Kfin Technologies Limited is the registrar for the issue.
The company features an impressive list of pre-IPO investors, including cinema icons Shah Rukh Khan and Amitabh Bachchan and notable investor Ashish Kacholia. The issue comprises a fresh issue only, aiming to raise ₹792 crore.
GMP signals over 30% premium
As of today, the grey market premium (GMP) for Sri Lotus Developers IPO stands at ₹46 per share. This suggests that the shares are anticipated to list at ₹150 above their issue price. With this GMP and the IPO’s upper price band, the estimated listing price of the shares would be ₹196, reflecting a 30.66% premium over the issue price.
The grey market premium represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to remember that GMP is a preliminary indicator and should not be the sole factor in making investment decisions.
About Sri Lotus Developers
The company is a developer of residential and commercial premises in Mumbai, Maharashtra, with a focus on redevelopment projects in the ultra-luxury segment and luxury segment in the western suburbs. Since its establishment, it has aimed at building a brand centered around customer satisfaction by creating environments that enhance our customers’ lifestyles.
The company operations are strategically located in Mumbai, one of the biggest real estate markets in India. The company acquired land for its operations in the western suburbs of Mumbai in 2017, focusing on the ultra-luxury and luxury residential properties market.
On the financial front, the company reported a revenue of ₹549.68 crore, up from ₹461.58 crore in the previous year. Net profit surged to ₹227.89 crore, compared to ₹119.81 crore a year earlier. As of FY25, total debt stood at ₹122.13 crore.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
